Nepra approves import of 1,000 MW electricity from Iran

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved the import of 1,000 MW of electricity from Iran for 30 years at the rate of Rs8-11 per unit for which Tehran is ready to provide 70 percent financing for the transmission line to be laid down in Balochistan. Iran has also offered to export 3,000 MW of electricity.
The authority, with Tariq Siddozai in the chair here on Tuesday, held a hearing into the petition of the National Transmission Dispatch Company (NTDC) seeking approval of the project to import 1,000MW of electricity from Iran.
During the hearing, Khawaja Muhammad Naeem, member tariff, said the NTDC had import of electricity with Iran on very much acceptable terms. The Authority has approved the project with the tariff hovering between Rs 8-11 per unit.
The said electricity will be injected in the national grid of the system. During the proceedings, the deputy general manager finance of NTDC informed the Nepra that Tavanir, an Iranian company, will install the power plant of 1300 MW at Zahadan and the electricity of 1000 MW will be purchased from Iran at the rate of Rs8-11 per unit which is to be transmitted through 500 kv HVDC (high voltage direct current) and will be injected in the national grid at Quetta. Such kind of transmission line will be constructed first time in the history of Pakistan, he said and added that the line losses of such transmission line will be lesser than the average line losses of 2 percent.
In case one transmission line gets out of order, the other one will be used to continue transmitting the electricity. Iranian company Tvanir, he said, under the agreement will be bound to export 1000 MW of electricity to Pakistan. The construction of transmission line from Pak-Iran border up to Quetta will cost $580 million and Iran will provide 70 percent financing of the transmission line. Mohammad Shabbir of NTDC also told Nepra that Iran has the potential to produce electricity of 70,000 MW and it is increasing its production by 5000 MW every year.
He said the issue of payments will soon be resolved with Iran once the issue of US and EU sanctions on Iran is over. At present, Pakistan is purchasing electricity of 74 MW from Iran for various areas of Balochistan. The up-gradation of grid station at Mand in Balochistan will get completed in December 2015 owing to which after January 2016, the import of electricity from Iran will increase up to 104 MW.